Brussels is to rule on whether attempts to nurture local footballing talent in Europe through squad quotas breach discrimination laws. Unveiling the European Commission's attempt to get to grips with some of the most contentious issues in European sport yesterday, Jan Figel, the Slovak commissioner responsible, said that Uefa rules obliging clubs to have quotas of "home-grown" players could violate EU laws banning direct or indirect discrimination on national grounds.

"European law forbids direct discrimination," said Figel, while conceding that "indirect restrictions" on clubs forcing them to institute quotas could be "of benefit" to the sport. The EU executive's first consultative "white paper" on sport said that quotas for "home-grown" players "must not lead to any direct discrimination", but added that such action could be acceptable if proportionate. Figel's first attempt to address some of the hottest issues has been preceded by furious lobbying from the big sports federations who have criticised the commissioner for being "timid and evasive".

Figel said he was not for the moment considering legislation to rein in European sport. But yesterday's paper could be a precursor to a more activist and interventionist policy from Brussels.

While recognising the "specificity" of sport in Europe, Brussels said it could not be exempted from EU law. "Competition law and internal market provisions apply to sport in so far as it constitutes an economic activity," the document said.

Although there were reservations that the joint selling of TV rights by leagues or federations could fall foul of EU free market and competition rules, the commission supported the practice rather than allowing the big clubs to monopolise the TV income. "Collective selling can be important for the redistribution of income and can be a tool for achieving greater solidarity within sports."

Karl-Heinz Rummenigge, the chairman of Bayern Munich, has complained bitterly about the lack of a level playing field in the Champions League, with the big Spanish and Italian clubs selling their own TV rights while the Germans share the income through the Bundesliga.